Asia private equity firms use controversial route to exit investments

'Continuation funds' gain popularity amid subdued market for initial public offerings

20240226 CHINA-ECONOMY-STOCKS

Continuation funds are controversial because the private equity firms involved are effectively sellers and buyers of the same assets. © AFP/Jiji

ECHO WONG, Nikkei staff writer

HONG KONG -- The subdued market for initial public offerings in Asia is prodding private equity investors in the region to pursue a controversial strategy for exiting investments: selling assets to so-called "continuation funds" they raise themselves.

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